The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1887-09-28
Vermont Freights.

The decision of the interstate commerce
commission in the case recently heard by
them at Rutland Is given more fully below
than was telegraphed from Chicago last
week. The decision holds that the Boston
* Albany has, on its own behalf, no ground
of complaint against the defendants. Its
grievance, II any, is that the defendant roads
make lower charges on long-haul traffic
than 1t makes. But this they have right
to do. In the high local rates the Boston Il
Albany has no concern. 1t was said in the
argument that 1t was interested in the uues-
ton because, If the Central Vermont could
lawfully make the higher charges on the
shorter haul, the Boston x Albany desired
to know it, in order that it might do the
same But this was no reason for instituting
these proceedings, for any case must stand
on its own facts, and it would not follow that
what would be lawful to the Central YER
mont would be lawful for the Boston & AL
bany, the circumstances and conditions of
whose traffic might be altogether different
The commission declare, however, that
the Vermont State Grange are in posi-
ton to be heard, and on their petition
the merits of the controversy are decided.
In deciding the case the commission holds
that the Central Vermont and the other
roads over which the National Dispatch line
operates are responsible for the rates made
by that line, which in law is their agent for
the purpose OF making them. 1t is also de-
cdes that the different rates are over the
" same line" contrary to what was claimed
by the defendant roads.
In regard to the third point in contro-
versy, the justification of the rates made
the opinion of the commission proceeds as
follows:
The principal controversy in the case has
been over the justification set up for the
charges on the short-haul traffic. AS bear
ing upon that controversy, a considerable
body of evidence was taken, the purpose of
which was to show that the very low rates
charged fot long-haul traffic were neces-
sity of the situation, and that the higher
rates for short-haul traffic were the lowest
that could be afforded. AS the Central
Vermont is the road principally concerned
with the short-haul rates, and the lines for
long-haul traffic are very often spoken of as
Central Vermont lines, it will not be neces-
sary in the further discussion of the case to
distinguish between the several roads, and
what we have to say will perhaps be more
readily grasped and understood if we avoid
doing So
"The Central Vermont is the success
sor to the Vermont Central and the YER
mont IL Canada roads, constructed in 1919
for local traffic. and which became bankrupt
and sunk all their capital. There was a
long receivershp, at the end of which re-
organization was effected under the name
of the Central Vermont, with a bonded debt
of seven million dollars. The company, as
reOrganiZed has paid the interest on its
debt, but no dividends, the surplus earnings
being all expended in improvements. The
road is in fine state of repair and eff
cheney, well supplied with motive power,
but still making use of leased cars through
the National Dispatch line. The line of
road is through sparsely populated coun-
try, with no large towns, and where the in
dustry is mainly agricultural. For many
years the population has been nearly sta
tonafy in numbers, but the wealth of the
people has been steadily increasing, and to
this inprpaGa the railroads huVa M HOuht
largely contributed; perhaps it is not too
much to say that they have rendered it pos
sible. There is not local traffic along the
line of road to enable the company on any
possible tariff to maintain trst-cass road,
and its managers before and during the re-
ownership directed their energies to making
it link in through lines from Boston and
other New England towns to Montreal, De-
troit, Chicago and other points in the West.
These efforts were successful and the Cen
trail Vermont was recognized by the trunk
lines as powerful rival for the traffic be-
tween the Mississippi valley and the sea-
board, and was allotted large percentages
of the business. But as the line was much
less direct than those. of the trunk line
roads and more time was required for the
passage of trains over it than between the
same points over the other lines, it was
compelled to make concessions in rates to
shippers, and the trunk lines recognized
this necessity and allowed it differential,
as it is called-that is to say, allowed it to
make concessions on west-bound traffic up
to an agreed point without its being re-
garded as a cutting of rates. This differen-
tial has been as high as ten cents hundred
pounds on trst-class freight between Bos-
ton and Chicago, and proportional on the
lower classes, but so large differential is
not now conceded. The National Dispatch
line, however, continues to insist upon it,
and its doing so led to the institution of the
original proceedings. The carriers forming
the Central Vermont lines insist that the
ditferentials they make are necessary to en-
able them to obtain a fair share of the bust
ness. Their rivals deny this and claim that
it results in forcing commerce into unnat-
ural channels and in the taking of traffic at
unremunerative rates. All this controversy
was gone over in the evidence and in argu-
ment, with the purpose on one side to estop
the Boston Albany, as an asserting
party to the dfferentials, from making the
complaint it now sets up, and on the other
to convict the defendant roads of unfairness
to their competitors. But all this becomes
immaterial to the controversy presented by
the complaint of the State Grange. What
we are concerned with now are the local
rates as they affect local shippers, not the
through rates as they affect the rival lines.
Zone popularity of this controversy is that
the diiferentials are notgiven or taken on
east-bound traffic, but, nevertheless, the
Central Vermont line is enabled to obtain
its full share of the business. The reasons
for this were not brought out in the hear
ing, but evidently the roads forming that
line have been able to give to shippers
more satisfactory facilities on east bound
than on west-bound traffic. But this
also is unimportant now. What is impor-
tant is the fact that the through business is a
necessity to the Central Vermont if it is to
maintain its present state of efficiency. The
| strictly through tonnage over it for the year
ending June 30, 1886, was seventy-nine per
cent of all; the strictly local tonnage was
but five and one-fourth per cent, while what
is denominated in the evidence joint freight
that is to say, freight received at points on
the line from points beyond its termini, or
taken up at local points to be transported
| beyond the termini-was fifteen and three
| fourths per cent. 1t is very evident from
| these figures that neither on the local
| traffic alone, nor on that and the joint traf-
| fic, can a tirst-class road be maintained. 1t
! is therefore the right and we may say the
! duty, of the managers of the Central Ver-
ness If they can do so without injustice to
| the local traffic and without violation of law.
No injustice is done to the local traffic by
taking through traffic at very low rates, pro-
vided the doing so neither makes the local
traffic more expensive nor otherwise incom-
modes it. The defendants put in evidence to
show: Q) That the rates on local traffic are
not out of proportion to those charged on
through traffic, il being very much more eX-
pensive to handle an equal amount of the
former than of the latter; (2) that the through
| traffic is not carried at a loss, but there are